He did and does have private investors, unfortunately he set a precedence with the financing he originally arranged. Nobody currently wants to invest on terms less than what he has established during this product launch and build out phase.
Early on (over a year ago), I had approached SH to participate in a financing round. He tried to sway me into terms, less than what they were giving to 504's. They tried but no way I was going to be the first and only one.
What they need is a deep pocket source(s)who can carry this to the finish line and clear out the remaining toxic financing on the books. I know, easier said than done and perhaps this is what is most disturbing. With the unique story and aplication for the hospitality industry, the foot in the door with Host, proof of system in process, huge ad rev opportunities, why have they not or can not acquire financing from a deep pockets investor who does believe?
I know they have presented to investor groups at numerous small business forums. We have heard for a long time that there is much interest, that there is debt financing and other options available but never with closure, just conjecture and empty promises. Why can't SP close the deal?
The problem is SP underestimated the cost to bring his product to market and the impact to the company of the financing deals which he has had to depend on. Getting into Host is huge but it does come at a cost, which he is finding out right now.
IMHO
